Bernanke Comments on Policy and Communication

Fed Chairman Ben Bernanke explains the Fed's strategy, including efforts to improve the labor market and increase growth, and the importance of communicating that strategy.

This transcript has been automatically generated and may not be 100% accurate.

... I ... oh well ... he ... write to you ... as of June ... um we had made meaningful ... progress ... in labor market ... conditions ... and the committee ... thought that was the time to begin talking about how ... the eventual ... wind down of the program would ... take place I would be tied ... the evolution of economic variables ... and that is there I talked about a pro of a post of ... a strategy ... that would take about a year ... for the total point them to take place in which in turn was also can fully contingent ... on the ... ratification so to speak of our outlook which included ... continued improvements in in the labor market so ... all that was very consistent with what we said we we begin the program that were our goal was ... to achieve a ... substantial improving the outlook for labor market ... and ... we need to communicate how that was to be ... put into practice ... failing to communicate that information ... um would have ... risks creating a large divergence between market expectations of expectations ... with the committee ... intentions were and that could lead to much ... much more serious problems down the road so ... I think the vacation ... was very important ... um ... the general framework that it's a party to question the general framework in which were operating is still the same we have ... a ... three part ... baseline projection which involves um ... increasing growth it's picking up over time as fiscal drag ... it produced ... um a continuing gains the labor market and inflation moving back toward its objective ... um we're looking to see in the coming meeting to be looking to see if that data ... confirm that basic outlook ... if it does we'll ... take the first at some point ... possibly later this year ... um and then continue so long as the data are consistent with that continued progress so that basic structure ... is still in place the what I wanna emphasize is really two things ... first um ... the SEC said the asset purchases are not on a preset course they are conditional on today that it always been conditional on that day ... and secondly ... that ... even as we move from asset purchases to rate policy is the principal school ... of monetary policy ... it's our intent to maintain a highly accommodative policy to